Sarah pays cash for a new car and when she drives it off the dealer’s lot, she hits another car on her way to a friend’s house to celebrate. The accident is Sarah’s fault. She injured the driver of the other car and damaged both her new car and the other driver’s car. Sarah’s PAP policy provides the following coverages:

Part A 50/100/25

Part D Collision Deductible $500

Other than the Collision Deductible of $500

Medical Payments $2,000

Rental Reimbursement $25 per day up to 30 days

Determine if the following losses are covered and state what line of coverage would respond:

1. The other driver is hospitalized for 5 days and spends six months in physical therapy with total expenses of $62,000.

50,000 covered by bodily injury by

2. Sarah’s car’s bumper, hood, and passenger door are damaged, and the mechanic estimates damage totaling $7,500.

3. Sarah received a moving violation from the attending police officer at the site of the accident. The ticket will cost $250.

4. The other driver’s vehicle incurred $10,000 worth of damages.

5. The other driver was unable to go to work for 36 days due to the injuries he suffered and filed a claim for loss wages of $5,600.

6. It took the repair shop 45 days to complete the work on Sarah’s vehicle and the rental car company charged her $30 per day, thus a total of $1,350.

7. Sarah went to the doctor several days later due to pain in her lower back, which she believed was due to the accident. Her medical bill was $1,000.

8. Sarah believes her laptop was stolen from her car while the tow truck company was delivering it to the repair shop.

Answer rating: 100% (QA)

Part A Sarah pays cash for a new car and when she drives it off the dealers lot she hits another car ... View the full answer